Thursday, March 12, 2020

Coronavirus: Visa suspension may cost Rs 8,500 cr for travel, tourism, aviation sectors

New Delhi: India''s travel and hospitality industry is headed for its worst crisis with an at least Rs 8,500-crore hit in revenues due to suspension of most visas over fears of spread of coronavirus that would result in lower footfalls and drop in business for tour operators, hotels and aviation industry.
Hotels and tour operators have seen a spurt in cancellations particularly after the WHO declared the outbreak a pandemic. Tourists cancelled travel, hitting hotels, airlines and tax collections after the government suspended most visas in a bid to halt the spread of coronavirus.

At least 40 per cent of rooms across big chains of hotels are going empty while banquet bookings have been cancelled, industry officials and associations said.

Tour operators estimate January-March quarter earnings could fall by more than 60 per cent.

India, which annually earns Rs 2,200 crore from foreign tourists arrivals, attracts nearly one million overseas visitors a month, a number which could see a drastic fall next month due to travel restrictions.

Indian Association of Tour Operators (IATO), and Assocham saw job losses in the sectors as companies try to tide over the situation by cutting non-essential workforces and stopping recruitment. They wanted the government to review the decision to suspend visas for a month and allow inbound travel through limited gateway cities.
12/03/20 PTI/Outlook
To Read the News in full at Source, Click the Headline


Post a Comment